What role should the federal government play in ensuring that major banks remain in business during...
What role should the federal government play in ensuring that major banks remain in business during difficult economic times?
Homework Answers
The federal Government play a very important role in ensuring that major banks remain in business during difficult economic times. These difficult times can arise due to poor share market condition, failure of loan takers to pay the loan,scams by peoples or any other mishappening.
The role of the Federal government is now to support the these banks either by using their own savings or with the help of other third party agencies.
The federal Government has to give instant funds to the Banks in their hard times or they should arrange funds by seeking help from other third party agencies like Insurance providers and other big firms. The federal government can also arrange funds with the help of world bank or foreign banks.
The federal Government lowers the taxes and legal formalities of the banks in their difficult economic times to support them and provide them time to run like normal days.
So, Federal Government in any circumstance provide help and support to the major banks in their difficult economic times.
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